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Marketing Strategies for Japanese Industry Within the U.S. Animation Market

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Marketing Strategies for Japanese Industry Within the U.S. Animation Market International Journal of Business and Social Science Vol. 5, No. 8; July 2014 Marketing Strategies for Japanese Industry within the U.S. Animation Market George Terunao Itagoshi Chuo University Graduate School of Policy Studies 742 Higashinakano Hachioji City Tokyo 192-0393 Japani Abstract Japanese-made commercial animation is often called ANIME in the United States and Europe. Its beginnings go as far back as Astro Boy which debuted on NBC in 1963 in the United States. After that, Anime was increasingly introduced in the United States through the years. Thus, Pokémon became a mass success in the U.S. and this has lead Japanese studios to believe they can tap in to the U.S. mass market. Since 2003 Japanese Anime sales have declined although the number of attendees of Anime conventions has increased each year. By exposing Japanese Anime to the U.S market - we will analyze the current competitive market. In order to analyze both business behaviors, we have to understand both markets and their competitive advantage or the uniqueness of their characteristics. To compete in this commercial segment – the strategies and routes to survive this competition. The ultimate goal being to understand Anime’s competitive position within the market segments to strategize. Keywords: Anime; Manga; niche market; subculture; animation studio; young adult market; Children market; Anime convention Introduction Japanese-made commercial animation is often called Anime in the United States and Europe. Its beginnings go as far back as Astro Boy which debuted on NBC in 1963 in the United States. After that, Anime was increasingly introduced in the United States through the years. Since its more mainstream beginnings, Anime has more recently been introduced as subculture into niche markets in the United States. Meanwhile, Japanese companies have always focused on mass market in the United States since it has always been received well with that strategy in Japan. It became a recognized movement with Akira having earned popularity in 1989. This movie raised box office revenues of $553,171 and grabbed many Americans’ interest to the Japanese language and Japanese culture. (JETRO, 2013) After the success of Akira, major distribution and sales channels were set up to develop the Anime market. This previous success was then followed by works such as Ghost in the Shell, Sailor Moon, Dragon Ball and so on, which were also supported by Americans. Nevertheless there was still doubt as to whether Japanese Animation had truly become a popular in the United States at that time. Concurrently, I was doing business for promoting the Japanese Anime since 1995. I ran a Japanese bookstore, a character-goods retail store, etc. which were in Atlanta, Los Angeles, New York, etc. and carry out sale of comics and anime video for the spread of Anime. In 1999 Pokémon a TV Anime series was released as another big hit, and again Japanese Anime became a part of mainstream pop culture in the United States. It became not only between some enthusiastic fans, but the brand gained recognition widely also in ordinary homes which were rarely exposed to Japanese content. The movie Pokémon the First Movie was distributed in over 3000 theater screens with box office earnings of $85.7 million. (JETRO, 2013) Hollywood films also scored a success and Pokémon made its popularity an immovable object. Director Hayao Miyazaki’s Spirited Away from Studio Ghibli won the Academy Award for best animated feature- length film in 2003 following this. The movie, DVD and other character related item sales record over $4,840 million in 2003. Spirited Away was consistently on the top charts of Anime DVD sales until 2005. (JETRO, 2013) It did not seem that Anime hits the United States and overseas till then. 280 © Center for Promoting Ideas, USA www.jbssnet.com Japanese studios then became aware of what can be expected to be able to obtain large revenues exceeding the Japanese market, when achieving such heights in the U.S. market. It was believed that if Anime achieved hits within the United States, and overseas, there was nothing left for them to accomplish. However, the profit in the Anime market fell off in 2003; falling in the sales to $217 million, which was half of its peaks of $428 million set in 2012. (JETRO, 2013) Although marched out to the mainstream under the influence of irresistible consumer forces temporarily, with expectation of Japanese companies, those forces changed towards only a hardcore fan-based market. There is still a belief amongst Japanese companies that in the United States Anime still can advance by mass-marketing in such situations. However, the popularity of Anime in its present condition as shown above is not conclusive to profits. How to expose Japanese Anime to the U.S market; we will analyze the current competitive market. In order to analyze both business behaviors, we have to understand both markets and their competitive advantage or the uniqueness of their characteristics. How one can compete in which segment – the strategies and routes to survive this competition. With the ultimate goal is being to understand Anime’s competitive position within the market segments to strategize. (in $100 million) Fig. 1: Presumed Market Size of Japanese Anime Market in the US (JETRO 2013) Definition of Anime and Animation market in the U.S Character of Japanese Anime Most Japanese Anime was created for Japanese audience and most pieces are a derivative of “Manga,” which is a form of comic books. There are very few cases when an Anime is created from other source materials. Examples include a game software concept like Pokémon or Academy Award winner Spirited Away which was created from an original screenplay and not from Manga comics. Graphic novels was the way Anime was introduced to the U.S. market; they had well-written storylines with unique characters. They also included strong messages from the authors that gave life changing experiences to the readers. These stories were different from those often depicted by superhero comics where, generally, American action heroes are often seen fighting for justice. American Animation has long featured strict market differences between what is created for adults versus children. In contrast the same Anime may appeal to consumers from all ranges of age in Japan. Anime also has cult following called “Otaku.” There are more than 100 Anime events held in the U.S. every year. (AnimeCons) At these events fans dress up as their favorite characters and participate in events to share and communicate about new products. They also often use these conventions to shop for character consumer goods, made domestically or imported from Japan. 281 International Journal of Business and Social Science Vol. 5, No. 8; July 2014 Segmentation of US Animation Market Structure U.S. market has two different key market segments, one for young adult and one for children. Although it is difficult to discern by which age to divide them, broadly, content made for those aged 13 and over falls into a young adult category. In the United States, such works are treated within the “PG-13” (Parents strongly cautioned) category, for those consumers less than 13-years-old. Since violence, fear inducing images, nudity, vulgar words, and other sensitive constructs are considered within this category, a guardian's severe attention is required. It does not divide by gender. Outside of these two segments, there the adult segment with graphic nudity and gay contents. Fig. 2: Segmentation of US Animation Market 2.2.1 Children Market Children market piece does not require a prerequisite knowledge of subject or storyline before watching the pieces to enjoy and relate to the characters. Children will most likely be introduced to the Anime piece by being exposed by their parents leaving the television on or they might see it in passing. Children just absorb the content as shown in the Anime without any references to which country the character lives in. Because children are receptive to the characters as they are shown on television, there often needs to be connections different forms of character exposure, such as retail goods. To sustain the character exposure, companies must invest in advertising the characters within many more media channels; often a huge financial investment. However once the audience likes a character they are loyal to the Anime conglomerate they will not only watch the show but to go to the movies, buy DVDs and other related character goods. Once you reach this level of success it is highly capable to appeal to mass market. The Lion King and Beauty and the Beast by Walt Disney are examples of this success. Additional examples from other studios include Toy Story and Cars from Pixar and Shrek and Madagascar from DreamWorks. In this same category Studio Ghibli has produced Spirited Away and Princess Mononoke from Japan. There are nationally treasured modern-day classics of Anime in Japan that have been going on for a couple of decades. Doraemon, Anpanman, Chibi Maruko-chan also from the children’s segment have been huge successes. However these franchises will not all work in the U.S. just yet. One of the reasons is that the U.S. has much stricter regulations compared to Japan. Violence, nudity, smoking and alcohol are usually not as strictly regulated in children’s animation in Japan. Another reason these children’s Anime in Japan doesn’t work in the U.S. because there is so much of a cultural aspect that is incorporated in the story line. 282 © Center for Promoting Ideas, USA www.jbssnet.com Similarities with the children’s market segment with the U.S. and Japanese market are Anime for children in Japan are not based on Manga comics.
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